When the Fed Uses Open Market Operations by Purchasing Treasury

question 37

Multiple Choice

When the Fed uses open market operations by purchasing Treasury securities from various financial institutions in the U.S., there will be

• A)an outward shift in the supply schedule of loanable funds.
• B)an inward shift in the supply schedule of loanable funds.
• C)no shift in the supply schedule of loanable funds.
• D)an inward shift in the demand schedule for loanable funds.

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